Starting as a freelance construction worker

1. Check if you fulfil the conditions for staying in the Netherlands

Entrepreneurs who intend to stay in the Netherlands must fulfil a number of conditions. You will sometimes also require a residence permit. Our interactive tool Coming to the Netherlands as an entrepreneur can help you find out if this is true for you, and tell you what other obligations you have to fulfil.

If you plan to start doing business in the Netherlands, you may also want to apply for a business bank account (IBAN). The Dutch Banking Association has created a Quick Scan to help you find out if you are eligible. Read how it works.

2. Register with the Dutch Business Register and Netherlands Tax Administration

When you start a business, you must register with the Dutch Business Register at the Netherlands Chamber of Commerce KVK. You can do this online. First choose a company name and a legal business structure. Then make an appointment with KVK to finalise your registration. KVK will pass on your details to the Netherlands Tax Administration (Belastingdienst). If the Tax Administration considers you an entrepreneur, you will receive your VAT identification number and VAT number within 2 weeks by post.

You can start a business or carry out a temporary assignment in the Netherlands while based in another country. Part-time entrepreneurs in the Netherlands are subject to the same rules as full-time entrepreneurs.

Choosing a legal structure

Before you can register your business, you must choose a legal structure. Be aware that freelance and self-employed professional (zelfstandige zonder personeel, or zzp'er) are not legal business structures. Most freelance construction workers start out as a sole proprietorship or sole trader, but you can also set up a private limited company (bv). Use our Tool for choosing a Dutch legal structure to guide you through some of the main considerations

3. Buying tools or a company vehicle

You often need money to get started in the construction sector. For example, for tools, machines, or a van. Do you not have enough money to buy these? Then you can lease them instead. Or look at other options for financing business assets.

Your tools and machinery must be safe. You should have them inspected and maintained regularly. For cranes and construction hoists, you need a certificate of approval from a specialist. And steps and ladders should be stable and made of sturdy material.

Vehicle for private or business use

Are you buying a van privately? Then you cannot deduct any vehicle expenses for income tax purposes. However, you may deduct a kilometre allowance from your profit. You may deduct the VAT on maintenance and use for your business kilometres. However, you may only deduct the VAT if the maintenance and kilometres are for turnover taxed with VAT (in Dutch). Are you buying a van for your company? Then you pay all costs including VAT via your company. Such as maintenance and fuel. If you drive more than 500 km privately with the van, you must pay a private use addition (bijtelling).

Driving a heavier electric van with B driving licence

Want to buy an electric van? The government wants entrpreneurs to be allowed to drive heavier electric (or hydrogen-powered) vans with a B driving licence. The condition is that you have had your B driving licence for more than 2 years. The rules and effective date are not yet final.

4. Draw up general terms and conditions

With general terms and conditions, you make things clear to customers and suppliers. You protect yourself and avoid uncertainty or misunderstandings. For example, about unexpected extra work, payment terms, and liability. Sometimes a sector organisation has general terms and conditions you can use.

5. Keep records

When you start a business, you are required to keep records. Your records are the basis for your tax returns. In addition to financial records, you need to keep business administration records:

6. File VAT and income tax returns

You must file VAT returns with the Tax Administration. You declare the VAT you have charged your customers. You deduct the VAT charged to you by your suppliers.

Are you working on behalf of another construction company? Such as a contractor or property developer? Usually, your client (the main contractor) pays the VAT to the Tax Administration. You then reverse-charge the VAT (verlegging, in Dutch) as a subcontractor to the main contractor. Indicate this on your invoice (in Dutch) by including ‘btw verlegd’ and the VAT-ID number of the main contractor.

When filing your income tax return, as an entrepreneur you can make use of deductions and tax schemes. You will then pay less tax. But you must follow the Tax Administration’s requirements for business records and what you are required to include in your invoices.

7. Check what legal requirements you need to comply with

Exactly which rules you must deal with depends on what work you are going to do. As a self-employed worker, you must comply with health and safety regulations (arboregels). There are also regulations to improve quality standards in the construction sector:

8. Apply for a VCA certificate

Your clients or insurance companies may ask for a valid Safety Checklist for Contractors certificate (Veiligheid Checklist Aannemers, VCA). This shows that your company complies with health and safety rules. It is not mandatory to have an VCA certificate, but it is often asked for in the electrical engineering and scaffolding construction sectors.

9. Take out insurance

As a self-employed professional in the construction sector, you run risks. Damaging a client’s property, for example, or injuring yourself if you fall off a ladder. Taking out insurance means you limit your risk. Some types of insurance are mandatory. Ask your insurance company about conditions, coverage, and costs before taking out insurance.

These types of insurance are important for you as a self-employed construction worker:

10. Arrange your pension

As an entrepreneur or self-employed professional in the Netherlands, you are entitled to a basic pension under the General old age Act (Algemene Ouderdomswet, AOW). However, you have to arrange extra pension benefits yourself. The following industries require you to participate in a sector pension fund:

• Painters and decorators, glaziers (in Dutch)
• Natural stone specialists, terrazzo and floor specialists, and plastering and construction specialists (in Dutch)

11. Calculating your hourly rate

When calculating your hourly rate, consider the income you need. And the rates your competitors charge. Use the KVK tool to calculate your hourly rate.

12. Find assignments in the construction industry

You can find work in construction in various ways. For example, you can take on jobs as a subcontractor or work through an online platform. You can also work for the government through a tender.

13. Avoid false self-employment

When you accept an assignment, you and your client need to make sure you really are self-employed and not in effect an employee. This is called false self-employment, and the construction business is one of the sectors where this happens.